Hello gwasiei,
You posted the transaction directly with a sales tax code.
There is no sales tax group and item sales tax group selected that find the sales tax automatically.
What you are doing by making this posting is to tell Dynamics that the complete amount of $700 is sales tax and that there is no base amount.
In Europe we regularly make such kind of postings for import sales tax duties.
I do not know how this is in your country but based on what you mentioned I would expect that this was not your intention to create such a posting.
If I am right, please correct it and make use of the standard sales tax group/item sales tax group settings to get the sales tax posted in the way you want.
Best regards,
Ludwig
